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3 “Insider Tips” to Choosing the Best Rental Property

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3 “Insider Tips” to Choosing the Best Rental Property

Finding the right property to invest in requires years of experience. It goes beyond just the location of the property, and it takes a trained eye to seek out the best investments.

If you are thinking about investing in a property, we want to offer some great tips on finding the best rental possible. Here are three characteristics we use at Holdfolio to determine if we want to invest in a rental property.

3 Things to Look for in a Rental Property and What to Avoid

1. A Substantial Amount of Cash Gain from Day One!

Robert Kyosaki, a well-known American investor and entrepreneur, once said it is imperative to make money when you buy a property. This way from the start there is no need to play a game of catch-up. You can lose a lot of money if there is the need to invest in improvements immediately upon buying a property.

What to Avoid: Properties that have a negative cash flow from the start when there is a mortgage involved.

2. In-Depth Look at Location

Thanks to the internet, it is easier than ever before to research every aspect of the location of your property. You can use websites like City Data or Zillow to do in-depth research on everything from the crime to the walkability of a neighborhood.

What to Avoid: Even if you find a property that is in a good area, it is important to check out the schools. No one wants to bus their kids to a school with a bad reputation if they can avoid it.

3. Condition of the Property

The structural soundness of the property is very important to check out. Take a look at the roof, foundation, walls, chimneys, etc. If you do not know what to look for during a home inspection, bring in a trusted inspector to check out the property with you.

What to Avoid: Properties with long-term repairs that send your cash flow in the negative due to ongoing maintenance.

Still Not Sure?

Investing in a rental property is no easy task. Make sure not to settle on the first reasonable prospect, but the property that is right for you. With enough patience and know-how you’ll be seeing a ROI before you know it.


7 thoughts on “3 “Insider Tips” to Choosing the Best Rental Property”

  1. Thanks for the post on residential properties and how to choose the right one for you. My wife and I are thinking about moving this summer and so it is a long process on deciding which house to move into. With that being said, we will make sure to look for a place that has a positive cash flow — thanks again!

  2. My father wants to diversify his investments. He has looked at several properties to purchase, but he’s not sure which to choose. I didn’t realize how important it is to look at the location of the property online to ensure there is a low crime rate. I’ll be sure to share this info with my dad.

    1. Thank you for sharing. The location is very important and we are glad to provide information that is helpful.

  3. I really love your point about choosing a rental property takes years of experience. Since I don’t know much about it, it’s good to know that I don’t want to be upside down in a loan as soon as I buy a rental property. After reading this, I think I’ll need to find a real estate agent to help me out to find the best condo for me.

    1. It does take Due Diligence and research to find the property that works for you! Best to you in your search!

  4. Great post! I would agree that choosing a rental property is not an easy task. It takes a lot of time and research. After you get some experience rental properties can be a great investment. Thanks for sharing!

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